An international frenzy to buy New Scotland Yard, SW1, is pushing prices more than £70m above asking.
Some 60 investors made an initial bid for the 600,000 sq ft office block, which has been home to the Metropolitan Police for nearly half a century. Some offers in excess of £320m were lodged – 28% above the £250m guide price.
West End sources said preliminary bids came from a number of North American parties, including US private equity firm KSL Capital, which owns the Malmaison and Hotel du Vin chains and famous Belfry hotel in Birmingham. Canada’s Lalji family and Hong Kong firm Joint Treasure are also understood to have shown interest.
A spokesman for vendor MOPAC said: “There has been a high volume of interest and subsequent bids… All offers received will be assessed against the financial suitability and ethical practices of each potential purchaser.”
Indicative redevelopment proposals for the site include 430 homes plus 98,000 sq ft of offices and shops. But new plans that include alternative uses, such as a hotel, could be drawn up by a new owner.
One London property agent said: “This project could keep an investor busy for 10 years and offers a blank-canvas opportunity.”
Vacant possession would come in 2016, when the operational HQ of the Met will move to the Curtis Green building on Victoria Embankment.
JLL is advising on the sale, which is expected to be concluded before the end of the year.
